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Your firm has the opportunity to repurpose one of its facilities and use it to invest in a new product that would change the profits

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Your firm has the opportunity to repurpose one of its facilities and use it to invest in a new product that would change the profits of your firm for the next four years as follows: Year Before After 0 9 5 1 7 9.5 2 8 11 3 9 12.5 4 8 17 The facility is currently being used to produce another product, which is scheduled to be decommissioned in 4 years. That product is expected to generate 0.5 in annual cash flows for the remainder of its life. Assuming that opportunities with similar risk earn 10% return annually, what is the contribution of the project to the value of your firm? 0.614 0.558 -0.278 2.699

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